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tv   Markets Now  FOX Business  November 9, 2012 1:00pm-3:00pm EST

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about. lori: you will have to check it out, as promised, more later. good afternoon, a 60-point rally. 400 something points, enough of a deficit on the dow. melissa: president obama delivering his first remarks of the white house since his election. expected to focus on the fiscal cliff in the broader economy. those comments live in just a few minutes. lori: interesting. the remarks coming after they come off of the weakest decline in a year. the markets near session highs, but will the market like what they hear? melissa: plus, what will the next four years mean for the oil and gas industry? the ceo will join us coming up. but it is time for stocks as we do every 15 minutes let's head to the floor of the new york stock exchange.
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stocks are climbing higher after the two-day drop. sandra: they did not start out that way, there was fear we would have another dramatic selloff today. now we are somewhat up from about 61 points. that is not exactly a rally. bouncing back a little bit ahead of the weekend, but still the worst two-day drop in a year, 434 points loss over that wednesday and thursday. as we face a fiscal cliff, consumer sentiment one piece of economic data that came out today better than expected in november hitting a five-year high, getting a little bit of a boost in the stock market. wholesale inventories 1.1% in september, above expectations, that is adding a bit to the rally as well. they're helping us to recover from those big losses that we saw on the week. we will see how things close,
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still a couple of hours to go in the market has proven to be very volatile. back to you. lori: indeed. with the election behind us, and fiscal cliff taking center stage. once away from the president's remarks on the economy and his plan to deal with the fiscal cliff. joining us now, chief strategist for ubs wealth management. great to have you with us. the markets are higher, are the markets reacting to what is ahead by way of the fiscal cliff? >> and think clearly at the election results came in they had priced out likelihood president obama would win the election. he would have a 2% to 4% increase if romney had one, and they have shifted their focus now that we have for sure essentially status quo political alignment. we know the past two years we have had difficulties.
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quickly shifting the focus produced prospects of the outcome for the fiscal cliff. lori: have we seen the worst? or will we need more time to sort it out? >> one should have a fully mutual acquisition. the fundamental backdrop for the equity market, you still have a pretty good economic backdrop and the economic data has improved the past couple of months. valuations are still reasonable. very accommodating fed and the reelection of president obama assures us the next chairman is likely to be a fairly dovish one as well. lori: so the debate over
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policies right now the fiscal cliff front and center, the overall health and evaluation of the stock market is pretty good. >> absolutely. equity risk is low compared to alternatives. plus economic data that has been improving. averaging 170,000. lori: we have breaking news, thank you for your announcement. melissa: breaking news as we head presenhave president obama. what do we expect to here? >> this is a focus of the white house putting it on the middle class and presenting a middle-class tax increase for the white house that has been protecting those earning less than $250,000 per year from a tax increase, those earning
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more, tax rate increase and given the president has recaptured the white house and democrats maintained the senate, democrats have been saying a mandate to raise taxes on the wealthy, we plan on following through with that. republicans will talk revenue, that is fine, but will not talk tax rate increase and it begins face-to-face to go sheesh it's next week. melissa: how much do you think, honestly, you spend all of her time there, you know them so well, how much do you think gets done in the near term? >> in the near term before the fiscal cliff hits, what people are looking at is a framework of deficit reduction, maybe a number, they be a number on tax revenues and on spending cuts and you spend next year filling in all the details like some explained it to me as a super super committee. that is the type of framework people are looking at right now. melissa: do you think it is
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enough make the market and wall street and everybody feel better because even though we are feeling the losses today, that really has been a point of terror over the last couple of days with a slate of characters back to washington who got us in into this situation in the first place. >> right. the market likes the punting at first blush, but then the warnings and the other agencies warning notice time to get serious on the deficit. they want to see something more gradual. i think if they have a gradual target for congress to negotiate next year, sort of the thinking right now you are still not far off in the details, but that is the major thinking right now that would probably be more positive for the market. while we have the same characters in the elements running washington, you have got something different because they swing the election in '08 and 2010. this was the one that was supposed to cite it.
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-- decide it. melissa: we don't see the president coming out yet, i probably have time to ask you one more question. when i hear about congressional leaders going and having lunch or have a meeting with the president at the white house comment reminds me of the business councils, other things we have seen the famous faces a file in and they will put their heads together to come up with a game plan and nothing ever happens as a result. >> you have a number of meetings at the white house that have been for congressional leaders coming up here, and they laughed anleftand said we didn't make ay progress or the grand health committee when nothing changed but the health care law. republicans are going into this with a bit of caution, but some of the language you heard from republicans already unprompted talking about revenue. the conversation seems to have shifted that they get the
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momentum toward a deal. melissa: get out of the way, here comes the president. >> you've got it. >> thank you, thank you everybody. thank you. thank you very much. thank you. thank you very much, everybody. everybody, please have a seat. thank you. well, good afternoon, everybody. now that those of us in the campaign trail have had a chance to get a little bit of sleep, it is time to get back to work. and there is plenty of work to do. as i said on tuesday night, american people voted for action, not politics as usual. he wanted us to focus on your jobs, not ours. in that spirit i've invited leaders of both parties to the
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white house next week so we can start to build around the challenges we can only solve together. i intend to bring in business, labor and civic leaders from all across the country here to washington to get their ideas and influence as well. at a time when our economy is still recovering from the great recession, our top priority has to be jobs and growth. that is the focus, the plan that i talked about during the campaign. [applauding] it is a plan to reward small businesses and manufacturers to create jobs here, not overseas. they plan to give people the chance to get the education and training that businesses are looking for right now. a plan to make sure this country is a global leader in research and technology and clean energy, which will attract new companies and high wage jobs to america.
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we plan to put folks back to work including our veterans. rebuilding our roads and bridges and infrastructure. they plan to reduce our deficit for a balanced and responsible way. our work is made that much more urgent because at the end of this year we face a series of deadlines requiring us to make major decisions about how to pay our deficit down. decisions that will have a huge impact on the economy and middle-class both now and in the future. last year i worked with democrats and republicans to cut a trillion dollars worth of spending that we just couldn't afford. i intend to work with both parties to do more. that includes to make reform that will bring down the cost of healthealth care so we can stren programs like medicaid and medicare for the long haul. but as i have said before, we can't just cut our way to prosperity. we are serious about reducing
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the deficit. we have to combine spending cuts with revenue. that means asking the wealthiest americans to pay a little more in taxes. that is how we did it. [applauding] that is how we did it in the 1990s when bill clinton was president, that is how we can reduce the deficit while still making the investments we need to build a strong middle-class in a strong economy. that is the only way we can still afford to train or help our kids pay for college or make sure good jobs in clean energy or high-tech manufacturing don't end up in countries like china. already i have put forward a detailed plan that allows us to make these investments while reducing our deficit by $4 trillion over the next decade. i want to be clear, going into
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every detail of my plan, i'm hoping to compromise, i'm open to new ideas. i am committed to solving our fiscal challenge. but i refuse to accept any approach that isn't balanced. i'm not going to ask students and seniors and middle-class families to pay down the entire deficit while people like me making over $250,000 aren't asked to pay a dime more in taxes. i'm not going to do that. [applauding] and i just want to point out, this was a central question during the election. it was debated over and over again. on tuesday night we found out the majority of americans agree with my approach. and that includes democrats, independents and a lot of republicans throughout the country as well as independent economists and budget experts.
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that is how you reduce the deficit with a balanced approach. our job now is to get a majority in congress to reflect the will of the american people. i believe we can get that majority. i was encouraged to hear speaker boehner. i look forward to hearing his ideas when i see him next week. let me make one final point that every american needs to hear. right now if congress fails to come to an agreement on an overaloveralldeficit reduction e end of the year, everybody's taxes will automatically go up on january 1. everybody's. including the 98% of america for make less than $250,000 per year. and that makes no sense. it would be bad for the economy, and would hit families who are already struggling to make ends meet. now fortunately we shouldn't
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need long negotiations or drama to solve that part of the problem. while there may be disagreements with congress over whether or not to raise taxes and folks making over $250,000 per year, nobody, not republicans, not democrats, wants taxes to go up for folks making under $250,000 per year. so let's not wait. even as we are negotiating a broader deficit reduction package, let's extend the middle-class tax cuts right now. [applauding] let's do that right now. that one step, that one step would give millions of families, 98% of americans and 97% of small businesses the certainty that they need going into the new year. it would immediately take a huge chunk of the economic uncertainty off the table.
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that will lead to new jobs and faster growth. businesses will know consumers are not going to see a big tax increase. most small businesses won't see a tax increase, and so a lot of the uncertainty you're reading about will be removed. in fact the senate has already passed a bill do exactly this. all we need is action from the house. i have a pen ready to sign the bill right away. i am ready to do with. i am ready to do it. [applauding] you know the american people understand we will have differences and disagreements for months to come. on tuesday they said loud and clear it will not tolerate this function or if you compromise and dirty work while so many are out of work, so many business
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owners are still struggling to pay the bills. people working for cooperation, working for a consensus, working for common sense. most of all they want action. i intend to deliver for them in a second term and i expect to find partners in both parties to make that happen. so let's get to work. thank you very much, everybody. melissa: so what was your take? he said he would not want everyo every detail, but he still says higher earners will pay a higher tax burden. melissa: that is right, i heard higher taxes. he said he has a mandate to the american people, majority of america.
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ask people to pay more. lori: what happens to the market while he was talking? melissa: now we are up about 38-point talking about raising taxes on folks who make money, taking it out of the markets they can pay the higher tax bill, i guess. lori: more of the same as you warned us about it. so we will continue with our coverage, the president and fiscal cliff and how it is impacting the market. melissa: president obama with what he has touted as diverse energy portfolio for america. the head of the oil industry biggest trade group joined us as the pressure mounts for the keystone pipeline. lori: we have a stronger dollar, traded with greece in particular, the dollar also
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stronger against the pound today. we're back after this. ♪ [ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus witinvestment information, risks, fees and expenses to read and consider carefully before investing.
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>> 21 minutes past the hour, this is your fox news minute. the lights are slowly coming back on the people affected by back-to-back storms the northeast, nearly all of connecticut businesses have electricity and food than 20,000 customers remain in the dark. new york long island has over 200,000 outages. a judge says a jetblue pilot that disrupted a flight can go free. the ruling comes a month after he was found not guilty by reason of insanity for his behavior on a flight from new york to las vegas. running through the plane millindoingabout religious and . negotiators are back at the bargaining table for a fourth straight day. trying to end a lockout that threatens the entire season.
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those are your headlines, back to lori. lori: what are we going to do without hockey? natural gas prices falling with forecast showing more more than normal weather. jeff flock with the latest. >> oil up, natural gas down. i want to get instant reaction to the speech. a big obama fan, i know, but says the rich are going to pay more. that has to be part of the deal. >> says the middle-class should have tax cuts right now. >> do you agree with that? >> i do, for sure. it will not be over, we will talk about this for a while now. >> will he make this happen though? will you be willing to pay more?
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>> if that is it, sure. i think it will probably be more than this. i think it is up for debate how much more will be for whoever is talking about on the upper echelon. >> natural gas, market no huge reaction, natural gas has been down all day. that is because apparently it will be warmer than we thought. it is a good piece of news for those minorities. oil up to date better than not consumer sentiment, right? >> why wouldn't you feel better? pay attention to the fiscal cliff. we have had other things, the usg number shot is up higher than normally we see. we have come back off. all for not, but a little bit of something to talk about. >> there you go, he is willing to pay more. look at this, $20 right there. he is already paying more.
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lori: jeff flock, thank you so much. from oil to the keystone pipeline. since president obama rejected in january, but now including prime minister say they are optimistic it will soon get done. joining us, ceo of the american petroleum institute. i will ask you out of the gate, are you optimistic the pipeline will get done on the three election is over? >> i think we are hopeful. the president is committed, pro-jobs and growth as we heard him a few moments ago. keystone at the pipeline generating 20,000 jobs almost immediately. we think it is a no-brainer like the prime minister has said, so i think it would be a good early indication the president is serious about job creation growth in the approval of the keystone xl pipeline will take us there quick. melissa: that seemed code to do we dare him to do it but we don't think he will. you are hopeful it seems you
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wanted but has he done anything to make you think he will go down that road? >> let me put it in this contest, everybody was shocked including the key supporters and organized labor when he denied the keystone xl pipeline last year. i just know it is good for the economy, and frankly this will be the first real test about all the above energy strategy. if he is really for what he said it is for it to be for the keystone xl pipeline. melissa: has he said or done anything, any action making him think he would approve it? anything to say here, it looks like maybe he will do it? >> they approved a southern route, indicated that with the first step in the process. he has implied once the election was over he would approve the northern route from canada into
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the united states. i will give him the method of the doubt in the short term, but this will be a key test as to whether he is serious about energy security and job creation or not. melissa: that would imply he would lose both, maybe he would lose the environmentalist. do you think it was all about politics and that he has the political cover now to go ahead with it? >> i don't know, depends on how he is assessing that politically. does he feel like he has to appease us who got him elected, or does he need to go to the american people are. the american people overwhelmingly three: that one almost supports keystone xl pipeline. the question to the president, will you go back to pure partisan politics or will you take the high road and support jobs and growth as you mentioned just a few moments ago which is the focus of the american people. melissa: it sounds like
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politically it would have made sense to approve it before if the majority of american people wanted it, could create jobs, the unions wanted it, whatever reason he didn't do it before to me seems like it would still be in place. >> that is a good question. conventional wisdom, conventional political wisdom would tell you should've been approved before the election because the number one issue was jobs and growth. some people believe now he is crossed that threshold, then reelected and can make the right decision now. we are anxious to see what he says, but we are hopeful he will approve. melissa: we have a lot of domestic energy between franking, shale, and the pipeline. thanks so much. >> always good to talk to you. lori: checking the health of the major traveler as we're joined in the first on fox business interview straight ahead. melissa: take a look at the days
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winners and losers heading out to the brake on the s&p 500. our rally is gone. up eight points. higher taxes for everyone not being greeted warmly by the market. we will be right back.
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melissa: so today's rally completely disappearing now. look at that. stocks have now gone negative after president obama's remarks at the top of the hour on the fiscal cliff on raising taxes. lori: you're not surprised. melissa: i don't know. remember dennis was celebrating at the end of last hour maybe this downward cycle had ended. that was enough and we were up 60 points. now we're down 11. let's head to the floor of the new york stock exchange. sandra smith is standing by.
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what are traders saying? >> i'm talk to one right now, ben willis. anytime president obama takes the microphone these markets sell off. that is the case in point. heard same thing from jason weisberg, anytime he takes the microphone we get a selloff. the dow has turned negative. barely negative down 10 points but a lot of traders focus on the s&p 500, a broader guage of the market, it is still positive. tech-heavy nasdaq is still leading stocks. it is positive. the focus is on the dow. if you look at a intraday chart of the dow, you'll see we hit the highs of the session just before president obama took to the mike phone. then we saw saw the big selloff. traders say uncertainty president obama does create when he does talk. they're all worried about taxes. they're all worried about the fiscal cliff. the dow jones industrial average is down 15 points. as i hand it back to you
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guys. we started off the day that way and had a rally and returning to where we started off during the trading day. lori: the whole report was a wash, sandra. we're back where we started from. >> scratch it. lori: thanks, sandra. even with a slight slowdown in september, travel confidence is on the rise? is this good news for the industry and the overall economy. joining me ihg america president. wonderful hotel change. been a customer many years. it was a great quarter for ihg. profits rose 9.2%. you cut debt and were able to raise room rates. is that the whole story? >> i think the story is the prefered brands we have and certainly a very strong business model with respect to how we continue to deliver great guest experiences and have a set of fantastic brands as i said. great delivery systems and really engaged colleagues. lori: where is the strength, in the leisure sector or in
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business? >> i think it is in both right now. we certainly see the leisure sector helped support the travel industry. ever since the recession we have seen that. business started looking a little shaky as we went into the presidential election last couple months. we think on the back of this decision we'll get back to business. lori: uncertainty has been a dirty word last couple weeks. now that we're behind, i'm sorry, we got the election behind us and we still have the fiscal cliff and looking at markets, president saying we'll have to tax highest earners and depend on the leisure marketplace, are you concerned that maybe the worst is not behind us? >> we look out in terms of travel intentions. travel intentions continue to give us room to think there is confidence in terms of the economy and that things will get done by our elected officials and we'll get back to business. both leisure traveler and business traveler will continue to stay in our hotels. lori: are you able, you raise room rates. are you able to, will you
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have to continue to raise room rates? do you think you will pass that increase on to regular customers? >> well the reflection of our business results and rates going up is really a reflection of the mix of business, not so much raising room rates. we continue to drive and give value to our customers and that means that we've got different customers who are coming in, willing to pay more or, the mix of those customers translates into a better revpar. lori: what is going on with the barclay hotel here in new york? that obviously property built originally in 1926 by the vanderbilt family, very historical property. it was on the market. bidders were up to $350 million. why is that in play right now? >> it is in play simply because we had a buyer we were working with exclusive. both of us agreed it wouldn't be a great outcome for either one. lori: why does ihg want to sell the property? it is new york city and a flagship. >> it is a flagship, goes back to our strategy when we
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became a stand-alone company in 2002 we took a position we wanted to go asset light strategy. that asset light meant selling down assets. we're going about that and returning to shareholders those proceeds. in fact we returned over a billion dollars this year. on the back of $9 billion in total we returned to shareholders. lori: i understand ihg is hiring 0,000 workers in the americas alone? >> travel is economic development which is good news about the industry. and part of that is we're doing our best to do our fair share, create careers, create jobs, educate a work foss. part of that is creation of jobs. we have the opportunity to continue to see a very strong pipeline and with that comes jobs. lori: what is the number one thing as we close out here, kirk, that your customers look for in their hotel rooms? what is the most important thing to offer? >> i think the most important thing to offer is no surprise. you know, it is all about the promise we keep through our brand. we have prefered brands.
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lori: is it a business center? is it a soft pillow? is it it a robe in the bathroom? what is really the winner? >> everyone is interested in a good night's rest. that's why we stay in hotel rooms and deliver that with a good level of promise and guest experience people are real happy. lori: kirk, thanks so much for sharing your business strategy with us. >> thank you. lori: have a good one. melissa: it has been nearly two weeks since superstorm sandy pummeled the northeast and drivers in the area are still dealing with gasoline shortages and rationing. unbelievable. adam shapiro is at a hess station in midtown manhattan with more on this. adam, i can not believe this is still going on. it's amazing. >> a lot of new york drivers can't believe it is still going on. real quick, look at something, first the line. this line stretches down to the 38th street, that is anywhere from 15 to 30 minute wait. look at the gas station. we haven't seen this kind of rationing since the 1970s or 1980s. this is even odd rationing.
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if your last number is odd number you fill up on an odd day. if the last number is letter not a number on odd day. even numbers tomorrow fill up. when we talk about what is actually happening here, because mayor bloomberg says the gas rationing could take several more weeks. they're still building infrastructure for delivery of infrastructure throughout the new jersey, new york area. the other issue is not only pipelines but the distribution centers where tankers fill up. some were damaged far worse than thought. that is also the reason they're having to ration. they can't get as much gasoline to the stations. on long island, electricity still out for over 200,000 people. that includes gas stations which can't power up to pump gas. that is the situation. spoke to drivers as i throw back to you, melissa. they were happy actually it wasn't more than 30 minutes. melissa: that's amazing. that's amazing. adam shapiro, thanks so much for the report. stay warm. lori: if the plate ends in zero that is considered even number for gas rationing.
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melissa: i did not know that. lori: right. if you have a letter i think you're even also, but i might be wrong about that. if you have a vanity plate. melissa: all right. there is no controlling mother nature. we certainly learned that. in the aftermath of sandy one new jersey state senator wants us to at least be better prepared. her campaign to keep the fuel pumping even when the lights go out. that is coming up next. lori: also, will the president's re-election mean another giant leap for mankind? nasa's new plan comes to light after the obama administration victory. look at interest rates. were people feeling scared, flocking into treasurys today as they had been in the last few sessions? well, not so much as you see by the no change in the yield on 10-year. 10-year at 1.62%. out the curve, 30-year duration unchanged as well. yield is 2.76. back after this. [ male announcer ] this is joe woods' first day of work.
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>> i'm robert gray with your fox business brief. it's been a seesaw day down on wall street after stocks had their worst two-day slide in a year. the dow is dropping once again down 16 points. ing u.s. is moving closer to making its wall street debut. the company expects to raise 100 million dollars in the initial public offering. jpmorgan and goldman sachs are the lead underwriter to the ipo. the u.s. postal service expects packages during the holiday season to jump 20%
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from last year thanks to online shopping. it will make up for tumbling mail volume that contributed to billion dollar losses in recent years as more americans communicate online. they expect monday, december 17th will be the busiest mailing day of the year. that's the latest from the fox business network, giving you the power to prosper
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>> it's one more small step for man. you know i love these nasa space exploration stories. i nasa apparently getting serious going back to the moon now that president obama has won re-election. the space agency is planning to build a base on the dark side of the moon to prepare for a president obama backed mission to an asteroid in 2025. i want a ticket although you already called me a space cadet, melissa.
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they have kept the plans under wraps on the off chance mitt romney, mr. mitt romney had won the election. you are. melissa: you are a space case. you love science and space. lori: sci-fi and all those things. according to as we do every 15 minutes, sandra smith on the floor for us. what are traders saying today? >> they're still trying to find which direction the market wants to go after a couple days of heavy selling. we came in, the markets sell. then they started rallying back. then president obama took to the microphone and stocks fell again. dow jones industrial average is down 15 points, guys. keep in mind the highs and the lows of the session. the high, 12,890. the low, 12,743. the traders are looking to the close of today's session to see what the sentiment is as we wrap up a very volatile week an huge week for the markets considering the election and now the facing of the fiscal cliff. back to you guys. melissa: sandra, thanks so
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much. so this morning new york drivers woke up to the first widespread gas rationing since the fuel crisis of the '70s. looked like a flashback here. as superstorm sandy and a subsequent snowstorm only left a quarter of new york city gas stations open. how can we prevent this from happening again? new jersey state senator has a plan and she joins us now with all of the details. i tried my best on your name. was that okay? i did the best i could. so you are looking at what they dot in florida, because obviously they have hurricanes all the time and their gas stations down there have book upgenerators. is that part of your plan? >> well, that is part of it. new jersey as you know experienced a lot of pretty serious weather and the experts tell us it will just get worse and we have to expect it will occur and storms will probably get worse. so we have to plan better for it. and the way we do that in new jersey, we have these gas lines. we had a gas shortage. melissa: right. >> it was really due to
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power outages, primarily, not a supply problem in new jersey. so there is gas in the ground and it is not being pumped. so really caused a lot of panic. melissa: right. >> wasn't just a matter not being able to go to the grocery store or to your job but it was a matter f people having generators not being able to fill them up to keep their homes warm. melissa: what is the solution. >> the solution is, part of a solution, offer incentive program, not require, offer incentive program to small gas stations to be able to purchase these backup generators to have at the gas stations like hess has done with all of its gas stations. melissa: yeah. >> they're able to get it, what my bill does, requires the state of new jersey to bulk purchase these generators that brings down the price. then at the same time the gas stations would be able to purchase them through our economic development authority at a low interest loan. melissa: when is last time before this that gas stations lost power though? >> well all i can tell you is what the experts are telling us and that is we
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can expect more of this. they say that global warming didn't cause sandy but it made it worse. one thing we know for sure, that sea levels have been rising over the last century and they will be rising more. melissa: yeah, i hear you. i just don't know how often it is that gas stations in the northeast lose power. i mean obviously been a huge problem this time around but i mean i don't know when the last time this happened. doing something, we're spending so much money on backup generators. also another huge problem was power at terminals was a big problem. it wasn't just the gas stations. that was at least half the problem. >> you speak to a bigger issue. the larger issue is what we do going into it. this is giving new jersey a time to have a heart to heart. we have to figure out how we rebuild our entire infrastructure. that include, you're right, not just gas stations but do we have enough backup power for cell towers? do we have backup pow for terminals that supply the gas? what about our drinking water? we have to rethink in new jersey as we rebuild how
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we rebuild better, how we protect our shoreline and what works. melissa: how much is the average generator for a gas station. >> ranges, really depends. it is a wide variety from 5,000 to 40,000. depends on number of things. dependent whether or not the capacity, obviously. melissa: yeah. >> what kind of fuel it uses. gas stations will be losing revenue once they're closed as well. melissa: absolutely. interesting topic. thank you for coming on. we're out of time. we appreciate it. >> thank you. lori: so twitter now getting papal seal of approval. pope benedict xvi set to join the social networking site by the end of the year. melissa: looks like he is tweeting. lori: if you watch the borgisa on cable, like, it is almost jerky. the vatican not yet released its handle. the pope is no stranger to tweeting already september a tweet from one of the vatican's twitter accounts earlier this year using an ipad. the pope could give lady gaga a run for her money
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having the most followers. that is easy. melissa: can we believe he is tweeting for himself? lori: i'm sure he has some cardinals helping him. melissa: yeah. angels maybe tweeting for him? lori: doesn't have a handle. what do you think it should be? melissa: you have a good joke? looks like you're work on this. lori: wheels are spinning. melissa: heaven sent? i don't know. anyway. lori: that is very funny. taking literary license, who is that? who is that lovely lady? [inaudible] little party. there we are. melissa: there is the whole crew. lori: had a party to celebrate. melissa: roger ailes. lori: of course. melissa: we'll talk about that.
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lori: this is an extra special day for us here on the 1:00 markets now show on fbn. medical list is launching her memoir. congratulations. >> thank you. lori: that is her on the cover. you as a child. diary of stage mother's daughter. a memoir. i read it. it is compelling. it is fascinating. melissa: thank you. lori: a little gossippy. has something for everyone. had a fantastic party. everyone came out to celebrate. melissa: it was so sweet. lori: you wrote this book, no ghost writer. this is all you. melissa: yeah. i, it's, all about my life.
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i know i am -- grew up in hollywood. i was on "little house on the prairie". i did all kind of commercials. i don't know if you know that or not. you can tell i'm not really blond. secret is out. there you go. me on the right. lori: jason bateman played your brother. melissa: michael landon was my dad. i had magical childhood. behind it all fueled by a tiger mom, a stage mom. and it sort of talks about growing up in hollywood. and my own life at home. and, --. lori: transitioned to harvard university. then a fantastic financial reporter. that is really cool. a lot of people can't do that. melissa: thank you. lori: these stories of child actors going bananas. melissa: going bananas. i have to take you on the book tour. lori: i can't wait. i feel like i've been on the book tour working with you every day. which is nothing but a pleasure. don't forget to check out, "diary of a stage mortgage's daughter". on sales and barns an noble.
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look at flash back especially grew up where we did. melissa: i tried to write it to read like fiction. challenge you. go read it. if the first two pages don't hook you, i will send a check it refund the money. that's all i have to say. lori: on that note, markets basically flat after the president spoke at top of the hour, promising new taxes. no surprise. pell shares down from the record high two months ago. is it good time to buy? jared levy weighs in with tracy and ash. that is up next on fox business. stick with us.
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ashley: good afternoon, everybody. i'm ashley webster. tracy: i'm tracy byrnes. stocks are losing their grip on the gains we had as we enter the last two hours of a brutal market, coincidentally happened the same time our president
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spoke. hmmm. the dow headed for third straight losing week of the nasdaq hasn't gained the past five weeks at all. ashley: the turnaround came after president obama claimed american voters endorsed his plan to raise taxes on the highest earnings. with the clock ticking toward a fiscal cliff, will they get down to work? tracy: i don't know. long gas lines in line for new jerseyians, we should put that in the script. we're talking with one new york official who used to work in the white house situation room. he is outraged. ashley: some people not getting power back until next tuesday. tracy: that is jersey. ashley: ray hennessey told me that. that is awful. stocks as we do every 15 minutes. sandra smith at the new york stock exchange. sandra, we're flat but stayed in negative territory no doubt after the president's comments. >> really undid a lot of earlier gains.
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it all happened when the president took to the podium and started talking. one of the things traders are talking about down here how the president reiterated spending cuts must be combined with what he said new revenue. they interpret that as higher taxes. that is midday market sell-off on the dow right on the flat line. keep in mind tech-heavy nasdaq has been the leader throughout the session. it is up .6 of 1% while the dow flirts in and out of positive territory. the low on the dow, 12,743. we are high earlier. a high of 12,890 we hit on the session. this is a week we dipped below 13,000 amidst the post-election day selloff where the dow lost 4 had points. we'll see how we wrap up the week. back to you. ashley: sandra, thank you very much. tracy: we have two hours to go.
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president obama vowed he will not accept any compromises that aren't balanced. we're trying to avoid the fiscal cliff. rich edson from the white house. rich, balanced sounds like higher taxes. >> to the president's benefit, democrats, tax increases on families earning more than $250,000 a year. negotiations at least to figure out what time they will meet at the white house next week are ongoing right now, according to congressional leaders. there will be a meeting at the white house next week. the president invited them at top of his comments today though the president made it clear, voters sent him back to the white house to insure that balanced approach we talked about, spending cuts and tax increases. he says he is willing to compromise but only so far. >> i'm not wedded to every detail of my plan. i'm open to compromise. i'm open to new ideas. i'm committed to solving our fiscal challenges but, i refuse to accept any
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approach that isn't balanced. >> i outlined a responsible path forward where we can replace the spending cuts and extend the current rates, paving of the way for entitlement reform as well as tax reform with lower rates. >> democrats haven't exactly of this. that is what republicans are pushing to get more revenue out of the federal system through an overhaul of the entire tax code but the president and democrats made it clear today they want right now that tax plan passed to keep those earning $250,000 a year or less from that tax increase. that is something republicans aren't going to go for. that allows the president to sit on his hands and allow tax rates to increase for those earning more. back to you. ashley:. tracy: so much for balance, rich edson thanks very much. ashley: rich, thank you. for more on the president's comments and market reactions i'm joined by the chief market strategist with
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convergys group. nicholas, thank you for being here. can you blame all of this market volatility, the big selloff we saw earlier this week on the president's re-election? >> it is hard to do that because i think it was fairly well forecast with betting trades like intrade predicting a victory. average of the polls. ashley: priced in? >> it seemed to be priced in. the oxygen focused on the campaign has gotten spread around to a variety of other topics. this fiscal cliff is first among equals that things the markets are focused on again. >> you said u.s. companies done an excellent job generating income in what has been a sputtering economy at best. now that we're focusing on the other areas, fiscal cliff, we have lots of others, obviously the tax implications that are coming up, impact of health care and so on, are businesses still going to hold onto their cash in the future moves because of uncertainty? >> that is really the $64 question going into year-end and first part of next year. as you point out
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corporations have done a fantastic job generating high levels of profitability in lackluster global economy. they have to feel confident enough to add jobs. that is really critical factor missing as we go to start worrying about the different things you lay out. comes to enegative overhang and corporate confidence and adding jobs. ashley: you said in your notes about five market tells. run through them quickly. apple. >> yes, apple is very important stock not only a large market cap stock but in 126 etfs, over 200 hedge funds own it. it is really a market barometer. ashley: what is your thought on the drop of this stock over last several days. >> very hard to say. we don't actually cover apple but i think it is very important tell thinking about in the market is going to recover, apple is leadership name. ashley: financials? >> financials are critical, critical contrary for the market. financials have had a very good rally this year. up over 18%. market is up over 10%.
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they are a leadership group. kind of group you want to see in leadership. strengthening demands for loans, credit quality, better housing market. ashley: 10-year bonds. >> 10-year bonds are great indicator about rories of inflation and next recession. average period of economic expansion in the u.s. lasts 50 points months. we're about 36 months in. we could get recession particularly if fiscal issues come up. 10-year bond is great tell. ashley: gold and silver tell you? >> i'm a big fan of gold and silver generally and precious metals because they're great inflation and policy hedge. you don't want to see gold rally very quickly because it indicates a lack of confidence in currencies and capital markets. ashley: very good. large cap sector rotation, explain? >> fancy wall street lingo for different sectors do well at different times in the economic cycle. ashley: sure. >> financials being one example we talked about. for example, cyclicals, consumer discretionary have very strong years. if you see investors get
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scared about the economy and selling off those groups it is another tell that the market is in for more volatility. ashley: is this volatility tilt, that is good place to end there is this volatility temporary or something we'll have to live with for a while? >> i think we'll be live with it for a while, i don't think expect rationally expects given what you saw on tv today the two will come to agreement anytime soon. it will be 23rd hour for this year and we'll do it again next year. ashley: has outlook for 2013 changed at all for the next two weeks? >> not so far. u.s. companies did fantastic job increase profitability. u.s. stocks are still one of the best areas. a little more volatile now but still one of the best. ashley: great place to finish. thanks so much for being here. >> thank you. ashley: thank you. tracy: nobody's confident they're going to come to the middle. kind of --. ashley: based on what we've seen so far, no. tracy: right, exactly. coming up, this is good story, legalized marijuana, believe it or not setting up
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a catch-22 for banks doing business in colorado and washington. of all people, liz macdonald will break it all down. ashley: what do you mean by that? tracy: i don't know. ashley: we'll have to ask her when we she gets here. gas rationing in the financial capital of the world what is wrong with this picture? let's look how oil is trading on the last trading day of the week. up again about 1%, narrowing in on $86 a barrel, just under. we'll be right back.
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man: we are rolling. all right, mama's gonna bring it home, mama's gonna bring it home. oh, no! man: oh, mom! aah! announcer: challenge your kids to be active and eat healthy. all right, let's see what you can do. let's go. announcer: search "we can" for ideas on how to get healthy together.
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ashley: voters spoken in colorado and washington state legalizing marijuana. the u.s. olympic committee, nhl and nfl and other leagues saying pot is still a banned substance for all the athletes even for teams like denver broncos play in colorado where it is legal. colorado has the only for profit medical marijuana market. with pot still illegal on the federal level how can these businesses continue to be profitable if regulations make it nearly impossible to work with banks? didn't think about that. liz macdonald did. she joins us now with her bottom line. interesting. one thing passes but creates a lot of other questions and concerns. >> that's right, ashley and tracy. sort of like moving in fits and starts. that is why, pot is illegal on the federal level. so you know, banks can not
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step in if they're federally licensed or federally insured, to help process the revenues from pot sales. so dennis kneale made a good point. they will to use paypal instead, people who deal in pot. the issue though essentially the governor of colorado is saying look, don't break out the cheetos or the, you know, the goldfish too quickly here because this will be an issue even though $1.7 billion business. the recreational sale and, use of pot hasn't really been done before. we had medical marijuana as you know. 18 states and d.c. other issue, guys. this is a problem, that is the crime has broken out around the marijuana shops in california. l.a.p.d. and drug enforcement agency seen crime rates since legalization really take off. there is tripling in the number of robberies around marijuana clubs. 57% increase in aggravated assault.
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131% jump in robberies from cars. this is all, crime rate since legalization around the medical marijuana shops. so again, you know, basically, this is controlled substance according to the federal government. it is addictive. has zero medical value. this dates back since the 1970s when richard nixon first outlawed marijuana, even --. ashley: can be arrested by federal official in colorado, marijuana charge? >> you could. up to the u.s. state attorneys general if they will pick up the federal state fight. states will say you can't, can't tell us what is illegal when we enacted a law legalizing it. so it is a big states right issue. yeah. ashley: emac, thank you very much. >> sure. ashley: interesting stuff. tracy: good to know the denver broncos will not be high. ashley: they play in the mile-high city. tracy: there is that. how about this? chrysler recalling almost 750,000 green grand cherokee
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and liberty suvs from 2002 through 2004. this is because a part in the vehicle's airbag control may fail. according to documents filed by the national highway traffic safety administration, a failure of that part could cause the front and side curtain airbags to open abruptly while driving. probe into the issue found over 200 cases of accidental airbag deployment that resulted in minor injuries but no crashes. chrysler dealers will install a jumper harness at no cost to owners. not only did i have a 2002 cheap cherokee. i had two infants in the back seat. not very comforting. i know airbag in the front. so, a little scary. ashley: as we do every 15 minutes let's check the markets now. sandra smith on the floor of the new york stock exchange. sandra, jcpenney can't get the new pricing plan to work for them. god knows they tried. >> they will continue to try according to ceo ron johnson
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today. the company really reporting dismal quarterly earnings. they missed on their profits. they reported a bigger than expected loss. their revenues were really bad. their sales were down 26% for the quarter. remember the whole idea, in turnaround plan was to scrap the sales and have these new, all-time, all the time low prices. not exactly luring the customers through the doors. the stock is down 5%. and by the way, jc pin any shares down 4% so far this year. ashley and tracy -- 42%. jcpenney is not only one coming out with bad earnings from retailers. kohl's expects the holiday shopping season, they expect it to be very promotional. meaning they will have to them sold to the customer. that would not be good news for jcpenney will not mark anything on sale. it is all low prices from here. we'll see how they do. back to you. ashley: consumer confidence is showing signs of hope. maybe they will open pocketbooks a little more
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this season. sandra, thanks so much. we'll be back with you in 15 minutes. tracy: nobody goes to jcpenney. that is the bottom line. >> you said that from the very beginning. you're right. tracy: nobody foes. nobody goes. start giving stuff away. coming up 11 days later, nearly half a million people in new york and new jersey still don't have power? there are still long lines for gas. they're not going anywhere either. we'll talk to one town official who actually used to work in the white house situation room. say that 10 times. ashley: no, i won't. here's a look how the u.s. dollar is moving right now against these currencies. euro sinking against the dollar. worries about greece. will the finance ministers finally come up with an answer for greece and its bailout mon city? the next tranche of that on monday. hopes are fading. weell be back
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>> at 20 one minutes past the hour i'm arthel neville with your fox news minute. president obama saying last hour he is inviting congressional leaders on both sides of the aisle to the white house to discuss a solution to the looming fiscal cliff. the president says raising taxes on the wealthiest americans must be part of the plan and he will refuse to accept any approach that isn't balanced. new reports out suggest president obama's senior
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advisor, valerie jarrett may have let secrets talks with the iranian region. the white house and state department responding to claims saying the reports are false. the talks would be the first one-on-one negotiations between the two countries in more than 30 years. a source close to the lakers front office is saying head coach, they will give him the boot, talking about mike brown. this is happening after the disappointing 1-4 start to the season. no word yet who will take over but the insider indicates the team will tap one of its assistant coaches on an interim basis. it is all i have for you on that one. when i have more i will give it to. >> that is good story, arthel neville. that is nice change of pace. thank you. ashley: breaking news. we got word president obama will coming here to new york on thursday to view recovery efforts after superstorm sandy. he is sure to get an earful. it has been 11 days since the hurricane hit the nor
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east. yet, hours ago, new york city and long island began enforcing gas rationing in response to the ongoing crisis and it is ongoing. adam shapiro is at a hess gas station in midtown manhattan with more on this story. adam. >> that's right. here in the man at tan the wait is anywhere 30 to 40 minutes. the line from this hess station stretches from 45th street to the 38th, 37th. on long island the wait is about an hour. the problem according to mayor bloomberg the infrastructure for delivering gasoline is still not repaired after superstorm sandy. we'll show you of video of people waiting in line to gas up. fox news crews out on the island they have seen people waiting, people not in a bad mood, keeping in mind we have the even-odd day rationing. if the license plate ends in a odd number fill up on odd day, same if your license ends in a letter, you're on odd day. if you have zero or even number you fill on a even day.
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in the hess station if you walk with a gas can, you wait and fill up. you don't have to wait. the mayor says infrastructure was damaged far worse than people realized. the distribution centers are not up as quickly as they like to deliver gasoline. then you have the electric problem on long island. you don't have electricity to start pumps up. that is the reason they say they're still rationing at this point. back to you, ashley. ashley: continues to be a mess. adam shapiro, thank you so much. appreciate it. tracy: it is torture. finally devastation from hurricane sandy many in long island are expected to be without power, god, as long as thanks giving. joining us the islip town assume supervisor and former homeland security advisor and worked in the white house situation room under presidents bush and obama. sir, thank you for being with us. i think the big question everyone wants answered is, our very own rick reichmuth was on reporting the weather saying before the storm hit, we'll be out of power seven to 10 days. we knew that. and yet we were not prepared
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for that. how come? >> that's a really good question. during our time at the white house both in the situation room and then on the homeland security council staff we learned a lot of lessons from hurricane katrina. those were written down. congress was a part of that process. what we learned you have to precoordinate assets. you have to be sure that you're on a video teleconference with the state emergency operations centers, with fema, with the department of energy, making sure that all those resources are ready to go, prestaged, ready to go into the affected area once the storm blows through. in many cases that will increase response time. the federal government says you have to be able to sustain yourselves for about three days and federal support will come to you. in this case it did not. 12 days later we're still without power in many locations. in our case we didn't have fema on the ground until eight days after the storm. tracy: a lot of people on long island without power. a lot of people in new jersey still without power too. at this point, unfortunately
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there is nothing we can do except wait. what do we do to prevent this happening next time though? should wires be all underground going forward? >> well, depend where you are. in low-lying areas that creates flooding of the infrastructure. that is almost as big a problem as power line coming down, in many cases more difficult to repair. what you need is utility companies have to be part of that precoordination before these storms come in. and they have to have a plan. we got a plan handed to us in the middle of this recovery effort and then it was after we had completed it, after we expended manpower that information went to the utility company and nothing happened. we were still without power even though we met the deadline. tracy: that's the thing. you on the ground level as islip town supervisor, you did everything you were supposed to do, right? you did all the little checks and balances pre-storm, proest storm. so the blame goes to the federal level, doesn't it? >> i think there probably will be time for blame game.
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certainly in the bush administration we were able to, before a storm, get all of those resources in a room, have a precoordination, video teleconference where you're monitoring that storm as it is coming in three days out, two days out, one day out. make sure those resources are ready to go. that's what we need to do going forward. i don't know whether that happened in this situation. but as somebody coordinating the recovery efforts on the ground i can tell you it took us a long time to get those resource. >> that is the problem. big picture, what does it say how delicate our infrastructure is as far as terrorism goes? i mean you could take us out like that apparently? >> it's, it's a concern, for the most, one of the greatest cities in the world where 60 miles away from one of the greatest cities in the world. it is the united states of america to have this fragile an electrical system is a problem. tracy: yep. >> that goes for natural disasters or other hazards to our homeland security. this is certainly something that is of concern.
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something that we need to very quickly address as we go forward in the recovery phase. tracy: tom, we need to start, keep talking about this. you got to come back. islip town supervisor. thanks for being with us and i really hope all the people, long island, new jersey, staten island, jeez, everybody gets it back soon. >> thank you, tracy. ashley: we have breaking news for you. more information from jay carney the white house spokesperson saying treasury secretary tim geithner will stay on he says through the inauguration of president obama, who of course has just been reelected to help with the fiscal cliff negotiations. that from the white house. of course there is lot of speculation if there is going to be any changing around at the cabinet level. tim geithner we're told will stay through the inauguration. that will be through, close to end january imagine and perhaps on from there, to help with the fiscal cliff negotiations which anyone that can come up with solution to that is much appreciated. all right. talking of which, let the fiscal showdown begin.
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president obama says, yeah he is open to compromise with republicans, but, higher taxes must be part of any deficit plan. our very own gerri willis will weigh in on that story next. tracy: as we head out to break though, the dow is only down 20 points. let's look at winners and losers on the s&p 500. gannett up almost 3 1/4%. we'll be right back.
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ashley: 30 minutes past the hour, a check of the markets, the dow starting to move higher. sandra smith with more.
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sandra: i have no real pro with me, then, what do you make of this market action after two days of heavy selling in the market looking for direction? >> it was beaten up pretty well two days in a row. if you look in terms of that it is taking a rest between rounds. i think we're at the low end lorraine and investors should have had their shopping list out buying the downturn because we are close to the bottom. nicole: you are recommending investors buy into this market now. >> absolutely. i always believe investors should buy when things are for sale, not when they are going to. traders have different mentality. and you start to bite and watch some come down. the orders are all bids across the floor on the low end of the trading range. nicole: when president obama of took the microphone and went to the podium to talk about the
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future and address the fiscal cliff, markets sold off hard. what was it that led to sell? >> the market has always hated the president stepped into the microphone. doesn't matter. he could have been talking about sunshine. it doesn't matter. the fact of the matter is they don't like when he takes up their time. the mark a always a law. nicole: thank you very much. ben willis says to buy the sell-off but it is not a sell-off right now. we are back up 40 points. a volatile session. ashley: it certainly is. thank you. we will be back in 15 minutes. breaking news. oil has closed up $0.98 at $86.07 a barrel. that is a gain of 1%. liz: and implement is the prediction of the congressional budget office what will happen if congress can't get their you know what together reduce the budget deficit. the president said he would be
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willing to work with congressional leaders and business leaders to help the economy. is it too are we doomed with what is going on? gerri willis here to help us figure this out. the believe any of it? >> here's what is interesting. we are awaiting the president's speaking today. i started thinking this is conciliatory and then you heard the words i won the election, the public is with me which told me there's a line in this and that this president has drawn and he is not going to cross and then we get an ap story with jay carney, the president's spokesman saying the president will veto any legislation raises taxes on wealthy. we don't know if people hurting them to $50,000 or more which the president said in the past or this part of a country where we have lots of people, middle income people make that amount of money.
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we don't know if it is that or $5 million or not clear, the president at this point in time to say a line in the sand to say here's what i will veto is pretty inflexible, he will sit down with john boehner or harry reid and hash this out, don't tell me what you are not willing to bend on. ashley: the ball is in his court from the republicans's perspective. we heard from john boehner earlier today. you are the president, you lead. >> that is something the president has not wanted to do. even when it came to obamacare he allowed the senate to write the legislation and hung back in the shadows where the legislation worked itself through the process and it will be interesting to see if that is the strategy uses here. i have big questions this afternoon and it seems to me everybody is talking about what they are not willing to do, not what they are willing to do and that is the big problem. here is what happens.
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you started by talking about this. two million americans lose their jobs. we are in recession. that is what happens. americans don't need another recession at this point. we need a way to get people employed, get food on the table so that we can grow this country again. ashley: what is coming up tonight? gerri: this is going to be really interesting. weaken play the sound from the president and talk about what he makes of it and if you were going to compromise would be and how would he do it? ashley: thank you so much. don't miss the willis report at 6:00 and 9:00 p.m. eastern time on fox business. coming up, health-care realities, states facing critical decisions about medicaid that obamacare isn't going away. what is next? tracy: let's take a look at the 10 and 30 year treasuries. ten year unchanged at 1.62%, near 30 year and change as well,
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2.76%. the dow up 68 points crawling back a little bit. we will take a break and be right back. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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robert: i am robert gray with the fox business brief. the university of michigan preliminary reading for the month is 84.9. a ratings downgrade weighing on shares of big lots, standard and
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poor's cut the rating and not down -- citing lower-than-expected second quarter results and sustained operating weakness for the move. stocks are down 22%. video game sales slumped 25% marking the eleventh straight month of decline. this may stimulate the holiday season for the industry as gamers' await the release of call of duty/black hawk 2. that is the latest from the fox business network giving you the power to prosper.
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>> the world's best known spot is that it again. the latest bond film as a sky high debut. dennis kneale has a coming for
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us now. dennis: bond, james bond is back and bigger than ever and arriving late. here comes scotty all, likely the best made and biggest grossing bond film ever and even has something i don't think any other bond flick in the 50 year history of the franchise ever had, scotty all has oscar buzz. the twenty-third bond film already a huge hit. it premiered first overseas ten days ago, passed $3 million in ticket sales and could hit $4 million overseas this weekend. is expected to dominate the u.s. box office this weekend hauling in $70 million making it the richest bond opening ever. the film heading $230 million for its full u.s. run. therap.com says guy paul passed the $600 million mark and make it the highest grossing bond film of all time. the two predecessor as our number 1 and number 2, the most recent film, one of the top
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grossing bond flicks it you just for inflation, the results might surprise you. look at the u.s. box office results. turned out funderbol, the scuba diving underwater bond thriller from 1965 is tops when you adjust for inflation would golddigger and you live twice at the top. the two most recent bond films casino royale, raking only 9 and quantum at number 12. as for who is the best bond, the newest bond daniel craig on his third bond vehicle as two more to go, says he wanted out from the get go. many say he is the best one since the very first bond, sean connery. ashley: i totally agree. tracy: i would have said sean connery. that is good stuff. i have not been to an adult movie and by adolf i mean not a kid movie in forever and i'm going to see this. ashley: entertaining great
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stuff. president obama's reelection all but guarantees the health-care law is not going away. our next guest says there are several challenges in the law that cannot be ignored. tom miller's fellow at the enterprise institute joining us now. tom, let's talk about that. water the challenges that can't be ignored? what is the biggest one? >> the biggest one is a license to read right reality james bond style. that will happen in a couple years. the big challenge initially is the implementation of whether their state based or federal health benefits exchanges. there's a lot of resistance at the state level. many question whether you can implement the design, beyond that is a legal challenge at the federal exchange to be done. there could be a lot of push back on this and cross bargaining and we are seeing the republican governors taking more of a stance like you create the mess and we will see what happens. that is the main one and the
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president pushed hard initially, they will come back and say we need something that works somehow and we will have our rendezvous with reality. the larger fiscal constraint, economic constraints and the economy not growing much and we are out of balance whether it is medicaid which operates on a binge heard dieting and spending, medicare is going to change initially and even the exchange subsidies for the avert coverage, they will get shaved down in a later iteration compared to what we are doing now. both sites are arguing over how they do this, not whether they have to do this. weathered is the president's approach or the republican approach they are talking about how to operate in a more limited budget. one is top down and the others more to patients and providers to figure out the choices. ashley: as i understand there is a backlog of new regulations that will be released on the new health-care plan soon because they were held back to after the election. we still don't know for instance
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what health services and expenses insurers will be required to cover. is that right? >> that is correct. if you find out more than you expected when you are not before voters there's a question whether they can finish these and to know what they're doing and somewhat of a block. the mutual gain of who gets the blame for this is going to be a little more evidence when the next stage of regulations come out as to what people and live with as opposed to a lot of push back and what we see initially we will get eventually. liz: ashley: could be a disaster with different states implementing their own plan or operating their own exchanges could create some of a chaos. couldn't it? >> depends what the range of variation is. it would also create chaos if you have an orthodox single approach to everything every way which is the exact opposite type of mistake. ashley: we could spend a lot of time talking about this.
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tom miller, american enterprise institute resident fellow. thanks for talking with us. tracy: quarter till, time for stocks as we do every 15 minutes. we head to sandra smith on the floor of the stock exchange. sandra: groupon getting killed, laying off a lot of people. european business struggling, lot of traders worried about the viability of the business considering that all on line deals saying groupon specializes in sort of going away. people are not as interested, down 30%, 86% so far this year. the company only went public year-ago, it missed profits estimates and they have businesses sectors in europe and europe's struggling somewhat, they did announce cutting 80 employees in the sales division. not a good quarter for groupon. this is a new low for the stock. tracy: see you at the top of the hour.
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what is a better holiday gift? and ipad or one share of apple? ashley: good question. tracy: senior equity strategist gerald levy will weigh in next. ashley: a look at today's winners and losers. the dow in positive territory and we have some winners. how about rim, research in motion and 4.5% only $0.37 based on stock price. netflix also up $1.83 at $77.80. the right back. those little things still get you. for you, life's about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for ily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently.
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ashley: a federal judge ruled the jetblue pilot who forced an emergency landing by learning about terrorist can go free. left the cockpit of the march flight running through the cabin yelling about religion and terrorists. austin was found not guilty by reason of insanity. he claims he had a brief psychotic disorder brought on by a lack of sleep. the judge ruled often can go free rather than enter a mental health facility. tracy: no comment. i hope you have a happy time. apple shares are higher today, almost $11 but are they still down more than 20% from the original all time high? joining me now, jerry levy, senior equity strategist with is that investment. apple getting a lot of talk, people worried about supply chain issues. we don't know anything about the i phone 5. they have not encroached europe and china. what do you say?
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>> there are a lot of moving parts to the store. if you back up and talk about apple in terms of fundamental revaluation of the past three years, the typical sort of trailing price-to-earnings multiple has been about 17 if you a looking backwards. looking forward it has been about 12. right now is at 11 which makes it relatively cheap. that said you need to look at what is happening with this i phone 5. this is a big time for apple, holiday season and upgrades. i went to best buy and couldn't find them and went to six best buys and they were not available. i brought and android. the point is a lot of folks getting the products could be a problem for apple. tracy: so analysts with price targets of $1,000 where do you stand? i had to make joy to live by and ipad or the stock? >> how long do you needed for? if you want to buy apple shares
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in need stocks go up immediately and that is your thesis you are in the wrong camp. apple right now even if it is priced fairly valuable, i have been -- you need to have a wonderfully to your window, you need to buy and i can't wait it out and the fiscal cliff issues could bring the stock down lower and you might get a better chance to buy if you are more of a trader. as an investor will be a surprise. tracy: do you think the selling many arguments overfold a lot has to do with a putting -- capital gains, dividends, does have a dividend. you think any of that has to do with the selling? >> all of this plays in. a lot of what we have seen over the last couple days is what we call al gore rhythmic training. you have a cap gains to worry about, but this big momentum push has been computers playing on the fears of people driving stock lower yet they're all concerned, we haven't seen that
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materialize and the chances of dividends going up 3% is very small, and maybe 15%. i don't think that is a big motivator but it is consideration. tracy: let's move on to the nasdaq on track for its fifth consecutive weekly loss, longest losing streak since 2001. how do you feel about the market in general right now? >> two weeks ago i came on the show and said this will be a momentary thing. i thought romney was going to get elected. now we have taken all of the good juice, tax cuts and repeal of dodd-frank, all these positives, now those are off the table and is all about valuation and when you look of the markets, when you look at earnings which are down, i am concerned and think we have more room to go to the downside. i think 1360 in the s&p and the nasdaq can also move lower. there's a lot of fluff in nasdaq
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specifically that needs to be taken out of we don't have those benefits of tax cuts and dodd-frank and obamacare getting repealed so you need to watch out. tracy: we will keep having you back to help us with all of this. thank you very much. he is probably right. we have a ways to go. and you have a ways to go. ashley: we won't get into that because i'm out of here. you are the next liberties be featured on slot machines? find out when liz claman talks to the ceo of one of the biggest makers of stocks to find out how online gambling is expanding, a fox business exclusive. count down to the closing bell is next.
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♪ fare thee well ♪ farewell ♪ mr. gloom be on your way ♪ ♪ though you haven't any money you can still be bright and sunny ♪ ♪ sing polly wolly doodle all the day ♪
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♪ hah liz: good afternoon everybody. i'm liz claman. it is the last hour of trading. this is countdown to the closing bell. we're beginning right now. the markets are up. but they've definitely been down today. we're trying

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